Abstract for: Extended Model-Based Systems Engineering and Modern Control Theory Applied to the Design of Enterprise Dynamics

Enterprise is a complex, adaptive system that brings people, resources, and processes together to produce value. MBSE has been the method of choice for engineers when designing complex systems such as planes. To capture their dynamic behavior engineers used modern theory of control, especially “state-space” approach to control system analysis and design. This paper extends these two tools to the design of internal enterprise processes and capture its dynamics. Model-Based Systems Engineering and "state-space" control method requires that enterprise is modeled as a dynamic system. We begin with Viable System Model and continue with Viable Complex Model, that is based on an extension of Shannon's information theory. Next we separate functional from physical behavior. MBSE Arcadia method and Capella software are used to design processes. Lyapunov equations are used to predict future and PID controller laws to manage change. Since early 1990s, MBSE became the tool used to design complex systems. The new information theory and its information-centric model of the enterprise convert a collection of parts into a well-defined dynamic complex system. In this paper we demonstrate that we can use MBSE to design internal processes to respond to environmental changes, use Lyapunov stability equations to predict future behavior, and use PID controller law to manage change. This paper introduces a model of the enterprise viewed as a complex dynamic system, with controller and controlled domains. Controlled domain is represented by the value creation cycle. Controller side includes the development of new products and strategic plan implementations viewed as system perturbations to the existing operations. Discussion point should be about how well the MBSE and the control theory can be used to describe and manage business dynamics.